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USD1 Stablecoin Briefly Depegs as WLFI Cites ‘Coordinated Attack’

Independent confirmation of the hack claims has not surfaced, prompting focus on liquidity frictions, Binance concentration, peg resilience.

Overview

  • USD1 slipped to about $0.994 per CoinGecko, with a deeper ~0.9802 print on Binance, before rebounding to near $1 within minutes to hours.
  • WLFI said attackers accessed cofounders’ X accounts, paid influencers to spread negative narratives, and opened large WLFI shorts to profit from volatility.
  • The company reported no impact to smart contracts or user wallets and said USD1 remains fully backed with BitGo custody and Crowe attestations supporting a mint-and-redeem design.
  • WLFI’s native token fell roughly 7–8% during the episode before partly recovering, while USD1 remains around a $5 billion market cap as the fifth‑largest stablecoin.
  • Analysts and reports note USD1’s heavy concentration on Binance (about 87%–93% of supply) and information lags on reserves as structural vulnerabilities, with no independent evidence yet substantiating the attack claims.